Zinc's three-month price on the London Metal Exchange was higher at the close of trading on Wednesday March 20, bolstered by an 11-year low in LME stocks, with the price continuing to approach $2,900 per tonne - a level not seen since July 2018.
Total on-warrant material was at its lowest level since 2008 at just 44,300 tonnes, while LME data showed five dominant warrant-holding positions. Three of these were across 50-79% of warrant holdings, tomorrow/next and cash positions, and two more were across 40-49% of tomorrow/next and cash positions.The metal's cash/three-month spread also remained in a sizeable backwardation throughout March, recently seen at $35 per tonne. This has failed to attract metal back to the exchange. But zinc stocks on the Shanghai Futures...